Worldwide spending on Telecom Services and Pay TV Services reached $1,509 billion in 2023, an increase of 2.1% over 2022, according to the International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker. IDC expects worldwide spending on Telecom and Pay TV services will increase by 1.4% in 2024 and reach a total of $1,530 billion.
The five-year outlook for the global connectivity services market remains positive, albeit slightly less optimistic than the previous forecast. Key central banks in the U.S. and Europe have repeatedly postponed decisions to decrease reference interest rates, impacting the potential for a more robust economic recovery. Consequently, the market environment is expected to remain relatively unfavorable for several more years.
Some highlights
Global Market Slowdown: In the latter half of 2023, the global market growth rate decreased, falling about one percentage point below IDC's earlier forecasts.
Factors in the Americas:
- Economic growth was slower than anticipated.
- High inflation levels persisted.
- Market saturation hindered development.
- These factors combined created a challenging market environment.
Market in EMEA:
- Despite facing similar economic challenges as the Americas, the EMEA region saw somewhat faster market growth.
- Regulatory approval for telecom operators to align tariff increases with inflation using the Consumer Price Index (CPI) model contributed to this growth.
Impact of Tariff Adjustments in EMEA:
- The adjustments led to a shift in consumer behavior:
- Customers migrated to cheaper tariff packages.
- There was an increased patronage of more affordable operators.
- As a result, actual value growth rates were significantly lower than the nominal tariff increases, often less than half.
